WHAT HAPPENED LAST WEEK - WordPress.com · 2018. 12. 10. · Auto & Aviation -Chirag Goyal Eicher Motor to expand its global market share with new 650cc bikes. FMCG-Shruti Kajaria

WHAT HAPPENED LAST WEEKSectors at a glance

02nd December - 08th December 2018

What is inside this week’s newsletter?

Chemical And Paints - Payal Jhawar and Sukriti HatgaonkarIndia to import crude oil from Iran using rupee based mechanism which is expected to be announced by the India’s state-owned UCO Bank in the next 10 days

Banking - Sarthak KrishnaSBI to recover Rs 2,111 Crores by selling 3 NPA accounts

Real Estate, Infrastructure & Cement -Arpit Daga & Akshit BatraNo GST on sale of properties with completion certificate

Pharmaceuticals -Dixit Sambyal22 USFDA observations for Lupin’s plant

IT & Telecom - Gaurav PatoleHCL to buy IBM software worth $1.8billion

Metals & Mining - Siddharth ToshniwalThyssenkrupp, Tata Steel near decision on steel JV board

Auto & Aviation - Chirag GoyalEicher Motor to expand its global market share with new 650cc bikes

FMCG - Shruti KajariaUnilever buys GSK Consumer Healthcare Ltd. In an all stock deal giving GSK, a 5.3% stake in HUL

Consumer Durables - Prateek SinghalConsumer durables to become costlier in coming weeks due to increase in crude oil prices, rupee dollar movement and recent increase in import duties

Auto Ancillary - Koustubh MannariBharat Forge, Motherson Sumi face risks as heavy duty trucks face headwinds

Textiles & Retail - Anoop Krishnan K350 crore garmenting hub in Gujarat launched by Arvind Ltd, expecting 12% revenue growth post demerger

NBFC - Anoop Krishnan KSBI owned REC Q2 net profit jumps 25% to Rs 1,764 cr

Ports And Logistics - Snigdha BaidyaHiranandani group to make huge investments in logistics and the industrial sector, adding a new vertical for the company’s business

What is inside this week’s newsletter?

Commercial vehicle sales down in November

Eicher Motor to expand its global market share with new 650cc bikes

The liquidity tightening that followed a crisis at Infrastructure Leasing & Financial Servicesweighed heavily on medium and heavy vehicle sales in November, after rebounding stronglyfrom the double effect of demonetisation and GST implementation last year. Sales of mediumand heavy commercial vehicles fell by more than 20% last month, the largest drop since May2017, when volumes dropped by 33% to 16,716 units vehicles. VE Commercial sold 3,935 unitslast month, down 7% from the previous year. Tata Motors fell 24% to 9,793 units last month,while Ashok Leyland's sales dropped 18% to 8,718 units.Commercial vehicle sales down in November

With two new 650cc motorcycles, Eicher Motors Ltd hoping to consolidate and expand itsmarket share in the global mid-weight motorcycles (250 to 750 cc) segment. The company hasbegun shipping new models to Europe and offers its existing and potential customers a goodreason to upgrade. With the two new models, Interceptor INT 650 (price Rs.250,000 -Rs.270,000) and Continental GT 650 (Rs.265,000 - Rs.285,000), the company's product portfoliohas expanded and is expected to boost sales.Eicher Motor to expand its global market share with new 650cc bikes

AUTO & AVIATION

By Chirag Goyal

Wheelbase: The distance from the centre line of the front wheels to the centre line of the rear wheels whose length is a major factor in road stability.

JLR sales fall 8% in November

Jaguar Land Rover (JLR), owned by Tata Motors, announced a decline in sales of 8% to 48,160units in November compared to the same month last year. The company said that sales declinedover the month due to continued difficult market conditions in China, while other key marketswere up. The Jaguar brand retail sales rose 8.9% last month to 14,909 units compared to thesame period last year, driven by the introduction of the E-PACE and I-PACE, partially offset bylower sales of Jaguar sedans and F-PACE. Land Rover retailed 33,251 vehicles in November,down 14 per cent year-on-year.JLR sales fall 8% in November

AUTO & AVIATION

By Chirag Goyal

Drum Brake: A brake that works by curved brake "shoes" pressing against the inside of a iron drum that is attached to the wheel.

Government needs to raise Rs 1 trillion in 3 years for PMAY-Urban

No GST on sale of properties with completion certificate

According to the rating agency Crisil, the government will have to raise around Rs1 trillion inorder to meet the target of constructing 1 crore houses in urban areas by 2022. Under thescheme, 63 lakh houses have got sanction, however, only 12 lakh have been constructed. 23lakh houses are under construction. The government aims to sanction 75 lakh houses andconstruct 30 lakh of them by the end of FY19. The government has started fundraising in theform of bonds through entities such as the Housing and Urban Development Corporation.The scheme also faces challenges such as unavailability of land in prime areas, increasingconstruction cost and bidding mechanism.Government needs to raise Rs 1 trillion in 3 years for PMAY-Urban

The buyers of real estate properties for which completion certificate is issued at the time of salewill not have to pay GST , from now onwards. However, GST is applicable on the sale of ready tomove in flats and under construction properties where completion certificate is not issued atthe time of sale. The builders have to reduce the prices of properties by passing on the benefitof lower GST rate to the buyers.Affordable housing schemes and other state housing schemes attract 8% GST, which can beadjusted by the builders against its accumulated input tax credit.No GST on sale of properties with completion certificate

PMAY – Pradhan Mantri AwasYojna was started in 2015 by GOI in which affordable housing will be provided to the urban poor by 31 March 2022

Real Estate, Infrastructure & Cement

By Arpit Daga & Akshit Batra

L&T construction arm released a press statement stating its acquisition of orders worth Rs 2547

cr in both international and domestic markets. International orders were won from 3 African

nations and one from Thailand. The orders have been for construction and revamping of power

transmission and distribution in Africa while L&T would be constructing a 230kV gas insulated

substation in Bangkok. In domestic market, major orders were received from Jharkhand and

West Bengal for construction of 132kV substations and transmission lines in Jharkhand and West

Bengal too. The project in West Bengal is a Turnkey project*. This is the third public statement of

L&T after it declared on 3rd and 5th December that it had won orders worth Rs 1127 crore and Rs

2106 crore respectively.

L&T construction acquires new orders worth Rs 2547 crore

Real Estate, Infrastructure & Cement

By Arpit Daga & Akshit Batra

L&T construction acquires new orders worth Rs 2547 crore

*Turnkey or a turnkey project (also spelled turn-key)

is a type of project that is

constructed so that it can be

sold to any buyer as a

completed product.

API: The Active Pharmaceutical Ingredient is the part of any

drug that produces its effects.

Aurobindo faces lawsuit for selling adulterated drugs

22 USFDA observations for Lupin’s plant

Aurobindo Pharma has been named in a class action lawsuit in the US over carcinogenicelements in a blood pressure drug. The allegation is regarding the contamination if its irbesartanactive pharmaceutical ingredient (API)*. The news was reflected on the share price as it fellmore than 4% on Thursday after touching a 52 week high on Tuesday. In October Aurobindo hadrecalled 22 batches of irbesartan due to detection of NDEA in trace amounts.Aurobindo faces lawsuit for selling adulterated drugs

USFDA, the US health regulator made 22 observations after the inspection of Lupin’s Mandideepplant in Madhya Pradesh. The inspection was carried from 26th November to 4th December.Lupin's Mandideep location houses the company's cardiovascular Pril API facilities,Cephalosporin API facilities and Cephalosporin solid oral dosage form facility.The company claims that the observations are procedural in nature and company is confident ofclaiming them satisfactorily.22 USFDA observations for Lupin’s plant

PHARMACEUTICALS

By Dixit Sambyal

Alembic Pharma to issue non-convertible debentures to raise money

Alembic pharma is planning to raise Rs 500 crore through the issue of non-convertibledebentures . The board of directors approved the issue, which will be carried out in multipletranches but they did not disclose the intentions behind raising the funds.22 USFDA observations for Lupin’s plant

PHARMACEUTICALS

By Dixit Sambyal

Citizens Energy Group selects Infosys to enhance customer service experienceInfosys has been selected by Citizens Energy Group to enhance the company’s customer serviceexperience. As part of this deal, Citizens will transform its customer service by using ‘InfosysPreconfigured Accelerator for Customer Experience (PACE)’, an industry-leading framework tuned forOracle Utilities Customer to Meter (C2M) platform. Infosys is a platinum level member of the OraclePartner Network (OPN). This led to an increase of 1% in Infosys stock. Citizen is expected to replaceits current CIS with Oracle utilities C2M.Citizens Energy Group selects Infosys to enhance customer service experience

HCL Technologies will buy some software assets from U.S.-based IBM Corp for $1.8 billion, thecompanies said on Friday, marking the largest purchase ever by an Indian IT services firm. HCL Tech tobuy around 7 software platforms from IBM helping it make its presence in new sectors such ascommerce, security, and marketing.• The deal will help HCL collect additional revenue of about $650 million in the second year of the

acquisition on a run-rate basis• The sales, however, would take roughly $25 million hit in the first year• For IBM, the deal is an opportunity to further trim its legacy businesses as it focusses on cloud

computing.HCL to buy IBM software worth $1.8billion

IT & Telecom

By Gaurav Patole

Efficient-market hypothesis-The efficient-market hypothesis is a theory in financial economics that states that asset prices fully reflect all available information. A direct implication is that it is impossible to "beat the market" consistently on a risk-adjusted basis since market prices should only react to new information

HCL to buy IBM software worth $1.8billion

Germany’s Thyssenkrupp and Tata Steel of India have finalised on a four member board to headtheir Joint Venture (JV) called Thyssenkrupp Tata Steel. Andreas Goss, head of Thyssenkrupp'ssteel unit, is the front runner to become chief executive of the combined entity, which will beEurope's second-largest steelmaker after ArcelorMittal. This appointment would strengthenThyssnkrupp’s position in the JV. The planned JV still needs to get approvals from the EuropeanAntitrust body, which is expected by the end of June,2019.Thyssenkrupp, Tata Steel near decision on steel JV board

METALS & MINING

By Siddharth Toshniwal

National Green Tribunal (NGT) –NGT is a special tribunal to handle the expeditious disposal of the cases pertaining to environmental issues.

Tamil Nadu Govt and Sterlite fight before the NGT

Thyssenkrupp, Tata Steel near decision on steel JV board

Sterlite Copper submitted a report to National Green Tribunal (NGT), agreeing to the closure ofthe copper plant at Tuticorin but had suggestions to certain points in the report. The Tamil Nadugovernment led by E.K.Palaniswamy has made a political promise to keep the copper smelter shut. It therefore argued that Tarun Agarwal committee was a fact finding committee and has nojudicial power to hold in the factory’s closure against the principle of natural justice. This led toIndia being a net importer of copper from the net exporter of refined copper. The import bill istherefore likely to increase by around $200 million a year.Tamil Nadu Govt and Sterlite fight before the NGT

Tata Steel BSL raises Rs 12,000 crore to refinance

METALS & MINING

By Siddharth Toshniwal

Bridge Loan – A bridge loan is a type of short-term loan, typically taken out for a period of 2 weeks to 3 years ,pending the arrangement of larger or longer-term financing.

Tata Steel BSL, formerly Bhushan Steel raised 12,000 crore form a consortium of banks to refinance the stop gap bridge loan, availed for acquisition of Bhushan Steel. Axis was the lead banker with other banks being HDFC Bank, Kotak Mahindra Bank and 2 other Kerala based banks. Tata Steel management said that this move would lower the cost of debt without any further increase of gross debt. The loan is at an interest rate of 9.3% with 12 years maturity. Tata Steel acquired Bhushan Steel earlier this year for Rs.35,000/- crore which was financed by a mixture of debt, internal cash generation and shareholder funding.Tata Steel BSL raises Rs 12,000 crore to refinance

Bank of Baroda raised over Rs 9.7 billion by issuing BASEL III compliant bonds

SBI to recover Rs 2,111 Crores by selling 3 NPA accounts

Bank of Baroda has raised Rs 9.71 billion by issuing BASEL III compliant tier II bonds. The

redeemable bond has a face value of Rs 1 million and a coupon rate of 8.42%. The banking

system has been implementing BASEL III norms since April 2013, and is expected to complete by

March 2019

Bank of Baroda raised over Rs 9.7 billion by issuing BASEL III compliant bonds

SBI is selling 3 NPA accounts namely Sona Alloys Pvt Ltd, MCL Global Steel Pvt Ltd and Jayaswal

Neco Industries. The e-auction for these accounts will take place on 13th December. SBI also said

that the interested banks/ARC’s/NBFC’s/FI’s can conduct due diligence of these assets after the

deal is signed.

SBI to recover Rs 2,111 Crores by selling 3 NPA accounts

BANKING SECTOR

By Sarthak Krishna

BASEL III is an international

regulatory framework which

sets the reforms to improve

the regulations, supervision

and risk management within

the banking sector.

HPCL to buy Iranian oil in January after six-month gap

India inks pact with Iran to pay crude bill in rupee

Indian oil refiner Hindustan Petroleum Corporation will buy Iranian Crude in January after a gapof six months with a total of nation’s overall purchase from Tehran at 9 million barrels. The US inearly November had granted India a 6 month waiver from sanctions against the Iranian oilexports. According to this agreement, India must restrict its oil purchases from Iran to 9 millionbarrels. HPCL would purchase 1 million barrels after its insurance company had refused toprovide coverage for the crude because of the US sanctions. But its chairman declared that HPCLmay resume buying Iranian oil under sanction waivers. Indian Oil Corporation to buy 5 millionbarrels and Mangalore Petrochemicals to buy 3 million.HPCL to buy Iranian oil in January after six-month gap

India to import crude oil from Iran using rupee based mechanism and 50% of those paymentswill be used for exporting items to Tehran. India’s state-owned UCO Bank is expected toannounce the payment mechanism in the next 10 days. Oil payments are being made in rupeesonly against the earlier arrangements where there was a ratio of 45% in rupees and 55% ineuros. Under US sanctions, India will be allowed to export only farm commodities, food,medicines, and medical devices to Iran, but items such as petroleum and petrochemicalproducts, steel, precious metals, graphite and automobiles are not allowed to be exported toTehran.India inks pact with Iran to pay crude bill in rupee

CHEMICALS AND PAINTS

By Payal Jhawar and Sukriti Hatgoankar

*Farm Commodities: It meanslivestock, poultry, field cropsand other agriculturalproducts which have adomestic or a foreign market

Unilever buys GSK Consumer Healthcare Ltd. In an all stock deal

FMCG

By Shruti Kajaria

An all stock deal is a method of acquisition, in which, the parent company agrees to provide the shareholders of the target company a certain number of shares in the parent company for every share owned in the target company.

Unilever buys India’s No. 1 malted-drink, Horlicks to merge it with HUL in an all stock dealworth $3.8 billion. This deal will give GSK, a 5.3% stake in HUL, and would consequently lead toa drop in Unilever’s holding from 5.3%, to 61.9%. GSK shareholders will be provided 4.39shares of HUL, for each GSK share. The deal, which has a transaction value of Rs. 31,700 crore,is expected to be completed in one year subject to shareholder approvals. The merger isexpected to increase revenues and synergies for the brand. GSK intends to focus more on thepharma segment and thus intends to free resources from other segments. The distribution forHorlicks will be taken care of, by the Lipton Tea maker and it is expected to benefit from HUL’sreach, which is much bigger than that of GSK.Unilever buys GSK Consumer Healthcare Ltd. In an all stock deal

350 crore garmenting hub in Gujarat launched by Arvind Ltd, expecting 12% revenue growth post demerger Arvind Ltd announced the launch of its largest garmenting hub worth 350 crore in Bavla,30 km

away from Ahmedabad. The company is expecting the hub to generate an additional revenue of

Rs.1000 crore. The company has already setup 2 manufacturing facilities in this region and the

additional facility will contribute 3 million garments per month to the existing garmenting

production of the company. The facility will employ 12000 people once the operation of the

plant reaches its optimal production capacity. The aim of the company is to explore

opportunities in synthetics, performance and functional wear. After the demerger of Arvind

Limited to Arvind Fashions Limited and Anveshan Heavy Engineering, the management is

expecting a revenue growth of more than 12 % from FY19 to FY22. The company also plans to

convert existing fabric orders into garmenting services as it provides higher margins.Arvind Ltd launches its Rs 350 crore garmenting hub in Gujarat

TEXTILES & RETAIL

By Anoop Krishnan K

*Duty drawback rate – A

refund that can be obtained

when an import fee is already

paid for the good, but the

good is then subsequently

exported

SIMA believes a decrease in Duty drawback rate on garments will affect exports negatively The increase in duty drawback rate* from 1.2% to 1.7% for cotton yarn, from 1.3% to 1.6% forcotton fabric and from 2% to 2.6% for made-ups was announced by the Ministry of Commerceand Industry. But there is a marginal decrease in the duty drawback rates of apparel items. TheSouthern India Mills Association(SIMA) has been demanding the revision of duty drawback ratesand P.Natarajan, Chairman SIMA thanked the government for considering their pleas. However,he also added that the exports in garment(apparel) industry might be considerably affected bythe decrease in drawback duty rates and suggested that the government should have retainedthe older rates rather than decreasing it.Decrease in duty drawback rates on garments might impact exports negatively, says SIMA

TEXTILES & RETAIL

By Anoop Krishnan K

*Duty drawback rate – A refund that can be obtained when an import fee is already paid for the good, but the good is then subsequently exported

Consumer durables to become costlier in coming weeks

Xiaomi nears Rs 23k Cr in revenue within 4 years of operations

Due to increase in crude oil prices, rupee dollar movement and recent increase in import duties,there is an increase in the cost of the consumer durable products. The companies have planned onpassing these incremental costs to the customers. Thus domestically produces washing machines andrefrigerators may see an increase in prices by 3% . The import duties were increased in the month ofSeptember, though we did not see any increase in prices as the companies had already stocked updue to the festive season. But now, from December, a fresh lot is being generated and ordered.Consumer durables to become costlier in coming weeks

Within 4 years of operations in India, Xiaomi has touched nearly 23,000 crore leading thesmartphone market. Now they are planning to enter the consumer durable industry by launchingproducts like refrigerators, AC’s, water purifiers and even electric vehicles. The company hasunshackled the TV industry with aggressive pricing.Xiaomi nears Rs 23k Cr in revenue within 4 years of operations

CONSUMER DURABLE GOODS

By Prateek Singhal

The consumer durables market in India is slated to grow at 10-12 percent per annum. The white goods market in India is currently valued at about Rs 50,000 crore.

E-commerce discounts hit offline sales of consumer durables

E- Commerce platforms accounts for just 5-10% of the entire consumer durable sales. Adisruption is caused due to the discounts offered online. Customers were unhappy with theprice offers in the retail stores, hitting the rest 95% of sales. On an average about 30-35% of thediscounts were offered online of which only 10-15% discounts came from the brands, the restwas given by the online partners. At some instances this offer reached to even 70%.E-commerce discounts hit offline sales of consumer durables

CONSUMER DURABLE GOODS

By Prateek Singhal

Xiaomi captured 27% of the market by the end of 2018Q3 results followed by Samsung at 22%.

PFC not to make open offer post REC acquisition

Muthoot Finance Q2 profit rises 9% to Rs 484 cr, AUM grows 21%

Power Finance Company (PFC) will not be required to make an open offer to minority

shareholders of REC after buying out the government's 52.63 percent stake in the company as it

is a related party transaction.

The Cabinet Committee on Economic Affairs (CCEA) on December 6 gave in-principle approval to

the acquisition of the government stake in Rural Electrification Corporation(REC) by PFC.

REC will continue to be a separate listed company. Government holds 52.63 per cent stake in

REC and 65.64 per cent in PFC. The government stake in REC is valued at around Rs 10,500 crore.PFC not to make open offer post REC acquisition

Gold financing company Muthoot Finance has reported a 8.5 percent year-on-year increase in

September quarter profit at Rs 483.8 crore with weakening asset quality. Profit in same period

last year stood at Rs 445.7 crore. Revenue from operations during the quarter declined 0.7

percent to Rs 1,650 crore compared to Rs 1,661.6 crore in corresponding period previous year.

Capital adequacy ratio for the quarter ended September 2018 stood at 25.92 percent, which has

fallen compared to 26.44 percent in previous quarter. Assets under management grew by 21

percent year-on-year to Rs 35,956 crore as of September 2018. The stock closed at Rs 444,

down Rs 3.70, or 0.83 percent on the BSE.Muthoot Finance Q2 profit rises 9% to Rs 484 cr, AUM grows 21%

NBFC

By Aashpreet Giddey

*The Capital Adequacy Ratio(CAR) is a measure of available

capital expressed as a

percentage of risk-weighted

credit exposures. The Ratio is

used to protect depositors and

promote the stability and

efficiency of financial systems

around the world.

*The first two are:

1. Capital Adequacy Ratio

2. Default

REC Q2 net profit jumps 25% to Rs 1,764 cr

State-owned REC posted a 25 percent jump in standalone net profit at Rs 1,764.33 crore for theSeptember quarter, mainly due to higher revenues. The company's standalone net profit stoodat Rs 1,407.76 crore in the quarter ended September 30, 2017. This has been the highest everquarterly profit declared by the company. Total income of the company grew by 30 percent toRs 7,299 crore in the second quarter from Rs 5,604 crore a year ago. The company sanctionedloans of Rs 49,003 crore in the second quarter, which were 120 percent higher than Rs 22,300crore in the year ago period. It disbursed loans of Rs 24,226 crore, which were 76 percent morethan Rs 13,751 crore earlier. The loan book of the company has seen a growth of 19 percent, asit grew from Rs 2.16 lakh crore as at September 30, 2017 to Rs 2.57 lakh crore as at September30, 2018. The net worth of the company stands at Rs 32,755 crore as at September 30, 2018 andthe capital adequacy is also placed at comfortable levels of 16.14 percent to support the futuregrowth of the company. The gross NPA ratio has fallen sequentially from 8.12 percent as at June30, 2018 to 7.92 percent as at September 30, 2018. Further, there are no indications of creditimpairment in the loans to the government sector, forming 87 percent of the loan book.REC Q2 net profit jumps 25% to Rs 1,764 cr

NBFC

By Aashpreet Giddey

* Impaired credit occurs whenthere has been a deteriorationin the creditworthiness of anindividual or entity. This isusually reflected through alower credit score, in the caseof an individual, or a reductionin the credit rating assigned toan entity or debt issued by arating agency or lender

JK Tyre to invest ₹12.5 billion in Laksar unit

Bharat Forge, Motherson Sumi face risks as heavt duty trucks face headwinds

After acquiring the Birla tyres factory at Laksar, Haridwar, JK Tyre has announced to invest ₹ 12.5billion in further expansion. Raghupati Singhania, the chairman and managing director of JKTyre, met Uttarakhand Chief Minister Trivendra Singh Rawat on Thursday evening and gavedetails of the expansion plan. The company has already invested ₹20 billion to acquire thefactory from BK birla group companyJK Tyre to invest ₹12.5 billion in Laksar unit

Order inflows for heavy-duty class 8 trucks has sharply falls by 35%. Firms like RamakrishnaForgings, Bharat Forge, Motherson Sumi have a significant exposure to manufacturers of Class 8trucks, which are essentially heavy-duty vehicles. Nearly 20% of Bharat Forge’s standalonerevenue and about 12-15% of its consolidated revenue comes from sales to this segment. So isthe case with Ramkrishna Forgings. Motherson Sumi’s dependence on this segment is by virtueof its overseas subsidiary, PKC, which commands a high share in the heavy-duty trucks segmentBharat Forge, Motherson Sumi face risks as heavt duty trucks face headwinds

Auto Ancillary

By Koustubh Mannari

Bosch Ltd. appoints Dr. Gopichand Katragadda as additional independent director

German auto parts maker, Bosch Ltd. has informed in an announcement (Circular Resolution No.2 of 2018) on December 4th that the board of directors have approved the appointment of Dr.Gopichand Katragadda as an Additional Director designated as an Independent Director of theCompany for a term of five years with effect from December 04, 2018.Bosch Ltd. appoints Dr. Gopichand Katragadda as additional independent director

Auto Ancillary

By Koustubh Mannari

Investments in industrial and logistics parks to be done by Hiranandani Group

Mahindra Logistics looking for acquisitions to increase digitisation

Real estate developer Hiranandani group is looking forward to make huge investments inlogistics and the industrial sector. The company is acquiring new lands either directly or throughjoint ventures and partnership. This will be a new vertical for the company’s business. It willinclude built-to-suit industrial facilities and warehouses, and cold storage for end customers aswell as large third-party logistics players. The company also has over 500 acres of land reservedfor this purpose. The “Make-in-India” campaign and GST has brought structural shifts infragmented warehouse networks.Investments in industrial and logistics parks to be done by Hiranandani Group

Mahindra Logistics is trying to increase digitisation to increase operational efficiencies. For thispurpose, it is looking for acquisitions in the logistics technology space. It has invested inTranstech technologies, three months ago and is in discussion with two companies foracquisitions. The company is trying to consolidate its freight forwarding business and adoptorder to cash model. The logistics industry is developing rapidly after the implications of GSTand e-way* bill. Mahindra Logistics is one of those companies who are working withgovernment to bring standardization in assets and infrastructure.Mahindra Logistics looking for acquisitions to increase digitisation

PORTS & LOGISTICS

By Snigdha Baidya

E-way* bill- It is a unique bill, electronically generated for the specific consignment/movement of goods from one place to another (interstate or intrastate) and of value more than INR 50,000. It is required under the current GST regime.